Decoding the Net-Zero Narrative: A Clarifying Guide by triply

Corporate pledges to reach net-zero emissions are becoming a frequent headline, signaling an encouraging shift towards decarbonisation as a strategic approach to mitigate climate change, regulatory risks, and to bolster competitiveness and supply chain optimisation. However, as discussions around net-zero emissions grow in volume, the specificity of the language used blurs, leading to potential confusion and, unfortunately, opportunities for greenwashing through ambiguous sustainability promises.
‍

In response to the confusing jargon and increasing instances of greenwashing, the Science Based Targets Initiative (SBTi) has released a "Net-Zero Jargon Buster" alongside their "Net-Zero Standard." triply, adhering to SBTi’s terminology, aims to illuminate these terms by relating them to the net-zero journey that not only our clients embark upon but is also relevant for all companies aiming for genuine sustainability.

Unpacking Net-Zero: Definitions and Terminology

The journey to net-zero can seem as complex as a game of Scrabble, but understanding the definitions is key:

• Net-zero involves reducing greenhouse gas emissions as much as possible, with any residual emissions being re-absorbed from the atmosphere by natural means like forests and oceans. It signifies the point where a business has minimised all controllable emissions and compensated for the remaining emissions through measures outside of its value chain.
  
  
• Carbon neutral represents a state where residual emissions are offset or compensated through external projects, although this approach can obscure the need for actual decarbonisation within a company’s operations.
  
  
• Neutralisation refers to the removal of carbon from the atmosphere and its permanent storage, also known as Carbon Dioxide Removal (CDR), including methods like Direct Air Capture (DAC) and Bioenergy with carbon capture and storage (BECCS).
  
  
• Beyond value chain mitigation (BVCM) entails actions taken to prevent, reduce, or eliminate greenhouse gas emissions outside of a company’s direct value chain. This includes both compensation and neutralisation and should supplement, not replace, decarbonisation efforts.
  
  
• Near-term science-based targets denote goals for the next five to ten years that aim to halve emissions compared to a baseline year, serving as an initial benchmark on the path to net-zero by 2050.
  
  
• Long-term science-based targets are reached when decarbonisation exceeds 90% compared to baseline emissions, with any remaining emissions addressed through neutralisation.
  
  
• Mitigation Hierarchy emphasises that decarbonisation within a company’s value chain should take precedence over external mitigation measures: compensation and neutralisation.‍‍

‍The Corporate Route to Net-Zero

A business's transition to net-zero requires setting clear targets aligned with the emission reductions necessary to stay within the 1.5-degree warming limit, followed by significant emission reductions through decarbonisation. Only after substantial reductions should residual emissions be neutralised through projects that permanently remove CO2 from the atmosphere. Traditional offsetting, while financially supportive of some environmental projects, is critiqued for issues related to permanence, overestimation, and additionally, and does not count towards a company’s Net-Zero target according to SBTi standards.

triply's Perspective on Achieving Credible Net-Zero Status

Achieving a credible net-zero status demands a shared understanding of relevant terminology and a rigorous stance against greenwashing. The net-zero journey is a long-term commitment that brings into focus a company's entire operations, offering benefits such as optimised supply chains and enhanced regulatory and climate risk management. According to the SBTi Net-Zero Standard’s "Mitigation Hierarchy," decarbonisation within the value chain must always precede external mitigation efforts, with neutralisation taking precedence over compensation. By adhering to these principles, the collective endeavour towards corporate net-zero targets can significantly contribute to global climate action and the pursuit of the 1.5-degree goal.

Embark on your net-zero journey with triply. By scheduling a demo, you can engage with our experts to explore how our solutions can support your company in achieving a sustainable and scientifically backed pathway to net-zero, particularly regarding corporate mobility and Scope 3 emissions, reinforcing your commitment to global climate objectives.